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Best Buy's Q3 earnings came in at $0.18 per share, which was stronger than the $0.12 expected by analysts.

Revenue came in line with expectations at $9.36 billion.

However, comparable store sales were light, climbing just 0.3% during the quarter versus expectations for 0.7% growth.

"First and foremost, we are committed to being competitive on price," said Best Buy CFO Sharon McCollam. "[I]t is table stakes in our transformation. So if our competition is in fact more promotional in the fourth quarter, we will be too and that will have a negative impact on our gross margin. "

"[A]s a result of the additional holiday pressures we just discussed, we believe it is prudent to narrow this range for the fourth quarter to 60 to 70 basis points (made up of an estimated 80 to 90 basis point negative impact on gross margin and an estimated positive 10 to 20 basis point impact on SG&A)," she added.